Comcast released second-quarter results on Thursday showcasing strength at NBCUniversal as the company prepares to split its media and broadband businesses into separate publicly traded companies. NBCUniversal's streaming service Peacock hit profitability for the first time during the quarter, while revenue in the content and experiences division rose almost 23% year over year, boosted by live sports including the FIFA World Cup and NBA postseason. The connectivity and platforms segment faced continued pressure, with the company losing 167,000 broadband residential customers and 280,000 cable TV subscribers during the period, though mobile additions marked a record quarter reaching 10.2 million total lines.
NBCUniversal Achieves Peacock Profitability and 23% Revenue Growth
NBCUniversal's streaming service Peacock reached profitability during the quarter for the first time, Comcast said. The streaming service benefitted from live sports including the FIFA World Cup and NBA postseason and brought in new subscribers. Revenue in the company's content and experiences division, which includes media unit NBCUniversal, rose almost 23% year over year.
The content and experiences segment that houses NBCUniversal's TV, film and theme parks saw revenue of $10.73 billion, boosted by the impact of the FIFA World Cup that began in mid-June and was aired in Spanish in the U.S. on the company's Telemundo network. Revenue for the TV media unit in particular benefitted from Peacock and an increase in advertising, and film studio revenue rose 25%. Theme parks revenue was up nearly 3% as softness at international parks offset higher revenue in Orlando.
Connectivity Segment Loses 167,000 Broadband Customers Despite Mobile Growth
Revenue for the connectivity and platforms segment, which includes the Xfinity-branded broadband, mobile and cable TV offerings, was down 3% to $19.8 billion. Earnings before interest, taxes, depreciation and amortization for the unit dropped nearly 6% to $7.96 billion.
Comcast lost 167,000 total broadband residential customers and 280,000 cable TV subscribers during the quarter. The company said that its shifted strategy for the broadband business is gaining traction following years of significant competition and pressure due to the rise of alternatives like 5G providers. Revenue for the connectivity and platforms segment declined as its lower pricing plans and promotions took hold.
Mobile remained a bright spot with additions that once again marked a record quarter and brought its total to 10.2 million lines. Mobile has become a major driver and key part of Comcast's strategy to boost the broadband business.
Comcast Plans Business Split Into Two Public Companies
The diverging performance of broadband and media comes weeks after Comcast said it would divide the two businesses into separate publicly traded companies. In Thursday's release co-CEOs Brian Roberts and Mike Cavanagh called the split an important step toward creating two focused companies with the financial strength and flexibility to pursue their respective growth strategies.
Overall Revenue Down 1.2% to $29.94 Billion in Second Quarter
Overall revenue for Comcast was down 1.2% during the second quarter to $29.94 billion. On a pro-forma basis, accounting for the impact of Comcast's Versant spinoff that was completed at the start of the year, the company said quarterly revenue was 4.7% higher.
Comcast reported adjusted earnings per share of $1.04, topping Wall Street estimates of 97 cents, according to LSEG. Shares of Comcast were about 1.5% higher in premarket trading Thursday.
FAQ
What were Comcast's second-quarter results?
Comcast reported second-quarter revenue down 1.2% to $29.94 billion and adjusted earnings per share of $1.04, exceeding Wall Street estimates of 97 cents. On a pro-forma basis accounting for the Versant spinoff, quarterly revenue was 4.7% higher.
How many broadband customers did Comcast lose in the second quarter?
Comcast lost 167,000 total broadband residential customers and 280,000 cable TV subscribers during the quarter. The connectivity and platforms segment revenue was down 3% to $19.8 billion.
What is Comcast's plan for its media and broadband businesses?
Comcast announced it would divide its media and broadband businesses into separate publicly traded companies. Co-CEOs Brian Roberts and Mike Cavanagh called the split an important step toward creating two focused companies with the financial strength and flexibility to pursue their respective growth strategies.
